Effect of Loan Management Strategies on Financial Performance of Selected Commercial Banks in Rwanda

Table 2: Regression Analysis

* Significant at 0.5 level (2-tailed), ** Significant at 0.01 level (2-tailed)

V. Conclusion and Recommendation

The study is analyzed the effect of loan management strategies on the financial performance of selected commercial banks in Rwanda.The existing literature showed that loan management strategies improve financial performance of selected commercial banks Given the findings, the researcher concluded that there is a strong positive link between that loan management strategies and financial performance of selected commercial banks in Rwanda The researcher concludes that if loan is well managed greatly and positively influences the financial performance of commercial banks.Researcher concludes that adequate loan management can increase the financial performance commercial banks while on other hand the poor or wrong loan management can lead to poor performance of commercial banks. The findings have revealed that loan management strategies help to improve financial performance and to achieve objective of bank.

Suggestions for further research

Further researchers are suggested to increase on the sample size and techniques to be used in order to obtain more representatives of the population.

The researcher is also recommended to carry out studies on:

 The effect of non-performing loan on financial performance of commercial banks in Rwanda.

 The impact of ineffective loan management on financial performance of commercial banks in Rwanda.

References

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